Kohls Q3 2012 FactBook (2)

FACT BOOK

50 years OF GREAT THINGS

Q3 2012

This year Kohl’s celebrates 50 years of great things—of innovation,

of providing quality products at a great value, and of commitment

to our communities.

Our mission for the past 50 years has been clear – to be the leading

family-focused, value-oriented, specialty department store offering

quality exclusive and national brand merchandise to the customer

in an environment that is convenient, friendly and exciting.

While we are excited to celebrate this milestone and our many

accomplishments, we also know the best is yet to come. The past

50 years have paved the way to a promising future, where every

day is an opportunity to deliver the next great thing.

At Kohl’s, we have a responsibility to our investment community

to provide accurate, timely and helpful information about our

company. Whether you’re a prospective investor or long-time

shareholder, we hope that you will find this Factbook a valuable

reference. We also routinely post information that may be

important to investors in the Investor Information section of

our web site at www.Kohlscorporation.com/Investor Relations.

We encourage you to consult that section of our website regularly.

WELCOME A message from Kevin Mansell, CEO

Chairman, President + Chief Executive Officer

This Factbook is intended to provide background information on Kohl’s Corporation. It should be read in conjunction with the company’s news releases and filings with the U.S. Securities and Exchange Commission (SEC). These are available on the SEC website at www.sec.gov, from commercial document retrieval services, and on our corporate website at www.Kohls.com. This Factbook contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Kohl’s intends forward-looking terminology such as “believes,” “expects,” “may,” “will,” “should,” “anticipates,” “plans,” or similar expressions to identify forward-looking statements. Such statements are subject to certain risks and uncertain-ties, which could cause Kohl’s actual results to differ materially from those anticipated by the forward-looking statements. These risks and uncertainties include, but are not limited to, those described in Item 1A in Kohl’s Annual Report on Form 10-K for the fiscal year ended January 28, 2012, which is expressly incorporated herein by reference, and other factors as may periodically be described in Kohl’s filings with the SEC. Forward-looking statements in this Fact Book will not be updated so it is possible that such material is no longer current.

Legal Disclaimer

INVESTOR RELATIONS | N56 W17000 RIDGEWOOD DRIVE | MENOMONEE FALLS, WISCONSIN 53051 | 262.703.1440 1

CONTENTSRecent Awards .............................................. 3Corporate Milestones ................................. 5Strategic Initiatives Merchandise Content New Brands ..............................................6 Merchandise Mix.................................. 10 Private & Exclusive Brands................ 10 National Brands .................................... 14 Nine-Box Merchandising Grid ......... 15 Marketing .................................................. 16 Inventory Management ......................... 17 In-Store Experience ................................ 18Real Estate Stores .........................................................20 Distribution Centers ..............................22Social Awareness ........................................23 Sustainability Program ............................25Financials ......................................................27 Capital Management .................................30Executive Biographies .............................. 31Board of Directors ......................................32 Corporate Information ..............................33


INVESTOR RELATIONS | N56 W17000 RIDGEWOOD DRIVE | MENOMONEE FALLS, WISCONSIN 53051 | 262.703.1440

National Corporate Awards• Top Retailers for Customer Satisfaction, Ranked #3,by the University of Michigan American Customer Satisfaction Index (ACSI)• Top Retailers for Customer Service, Ranked #6, by the National Retail Federation• Most Reputable U.S. Companies, Ranked #13, by Forbes Magazine • World’s Most Admired Companies, Ranked #5 in General Merchandiser’s Category, by FORTUNE Magazine• J.D. Power Customer Service Champion, by J.D. Power and Associates• America’s Top Stores, Ranked #2, by Consumer Reports Magazine• Most Valuable Retail Brand, Ranked #16, by the Interbrand Design Forum• Most Desired Brands, Ranked #6 in Women’s Most Desired Brands, by Buyology and Forbes Magazine• Customer Loyalty Engagement Index, Ranked #4, by Brand Keys • Temkin Experience Ratings, Harris Poll Customer

•

• Relationship Series - People’s Pick, Ranked #1, by Harris Interactive• America’s Favorite Retail Chain, Ranked #1, by Market Force Information• America’s Most Inspiring Companies, Ranked #21, by the Global Institute for Inspiration• Favorite 50 Online Retailers, Ranked #6, by the National Retail Federation’s STORES Magazine• Hot 100 Retailers, Ranked #57, by the National Retail Federation’s STORES Magazine• Top 100 Retailers, Ranked #20, by the National Retail Federation’s STORES Magazine• Fortune 500, Ranked #142, by FORTUNE Magazine• Temkin Loyalty Ratings, Ranked #2 overall and #2 in retail, by the Temkin Group• Global 2000 – World’s Leading Companies, Ranked #496, by Forbes Magazine• RACie Award, Ranked Silver in Large TV Ad Broadcast, Peter Glen Award Retail Category, by the Advertising and Marketing Association

At Kohl’s, we strive to excel in every facet of our business. Recently, we have received a variety of prestigious honors in a variety of categories ranging from customer service and

satisfaction, to corporate responsibility and ethics, to sustainability and hometown philanthropic partnerships.

RECENT AWARDS

Ranked #57 overall #15 in retail, by the Temkin Group

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Corporate Social Responsibility Awards• ENERGY STAR Award for Sustained Excellence, by the U.S. Environmental Protection Agency• Social Media Sustainability Index, Ranked #88, by Wizness• Green Power Partner of the Year Award, U.S. Environmental Protection Agency• The Greenest Big Companies in America, Ranked #58 overall and #5 in retail, by Newsweek• Corporate Social Responsibility Index (CSRI 50), Ranked #33, by the Boston College Center for Corporate Citizenship / Reputation Institute • Best Green Companies for America’s Children, Working Mother Magazine

Executive Rankings• America’s Best CEOs, Kohl’s ranked #53; by Institutional Investor Magazine• America’s Best CFOs, Kohl’s CFO ranked #1; Kohl’s Investor Relation Professional ranked #1; Kohl’s ranked #53, by Institutional Investor Magazine• Power 100, Kevin Mansell ranked #32, by Footwear News Local Awards• Best of Milwaukee, Shepherd Express

RECENT AWARDS CONT’D

4

1968 2012


1962 After growing a small grocery store business into the largest supermarket chain in the Milwaukee area, Max Kohl opened the first Kohl’s Department Store in Brookfield, Wisconsin. Kohl’s was positioned between the higher-end department stores and the discounters, selling everything from candy to engine oil to sporting equipment.

1978 BATUS, Inc., the U.S. division of BAT Industries, (British American Tobacco) PLC, purchased an 80 percent stake in the Kohl’s Food and Department Stores and took complete control of the company. The Kohl family withdrew from the operations of the company.

1983 BATUS, Inc. sold Kohl’s Food Stores to Great Atlantic and Pacific Tea Company (A&P). A&P closed the Kohl’s food stores in 2003.1986 A management-led group of investors formed Kohl’s Corporation and acquired Kohl’s Department Stores from BATUS, Inc. At that time, there were 40 stores with annual sales of $300 million and over 5,000 Associates.1987 Over 80 percent of our merchandise carried national brand names recognized for quality – setting the company apart from mass merchandisers and discounters. The chain dropped low-volume, low-margin departments such as candy, sewing no-tions and sporting goods in favor of higher-margin merchandise such as linens and jewelry.

1988 We acquired 26 Main Street stores from Federated Department Stores, increasing our store count to 66 and enabling us to move into new markets in Michigan, Minneapolis/St. Paul and Chicago.1992 We completed an initial public offering of 11.1 million shares, one of Wisconsin’s largest initial offerings.1996 Our stock split two for one in April. 1998 Kohl’s joined the S&P 500. Our stock split two for one in April.1999 Larry Montgomery was named Chief Executive Officer (CEO) replacing William Kellogg. Mr Kellogg retired at the end of fiscal 2000 after 34 years of service.

2000 Our stock split two for one in April. 2001 The introduction of Kohls.com brought online shop-ping to our customers, providing the added convenience of shopping from home. 2008 Kevin Mansell was named President and CEO in August, and Chairman of the Board in September. Larry Montgomery retired after 22 years with Kohl’s. 2010 We opened a second E-Commerce fulfillment center to support the growth of our on-line business. We also rolled out in-store kiosks to all stores.2011 We paid our first quarterly dividend, $0.25 per share on March 30th and opened a third E-Commerce fulfillment center. Our E-Commerce business exceeded $1 Billion in revenues.2012 We celebrated our 50th year of operations and opened our fourth E-Commerce fullfillment center.

CORPORATE MILESTONES

1975

19802000

2012

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CORPORATE MILESTONES

DESIGNATIONDesigNation is a new limited - edition collection concept featuring fashions based on international inspiration from different premier designers.

The first DesigNation collection was launched in November. It was designed by Narciso Rodriguez and was inspired by his recent travels to Istanbul. The collection features misses’ apparel includ-ing outerwear, dresses, skirts, pants and shirts.

The Derek Lam colleciton is expected to launch in April 2013 and will feature misses’ apparel and swimwear inspired by Lam’s travels to Rio de Janeiro, Brazil.

New BrandsSTRATEGIC INITIATIVES

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Merchandise ContentSTRATEGIC INITIATIVES

PRINCESS VERA WANG...

Princess Vera Wang, which launched in July 2012, was designed with Vera Wang and features playful yet sophisticated apparel, jewelry, handbags and shoes.

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ROCK & REPUBLIC

Rock & Republic, which launched in February 2012, is an authentic luxury brand and represents a lifestyle that is aspirational and appealing to many. The collection features the brand’s authentic premium denim bringing an edgy, contemporary and attention-grabbing style to men and women across the nation.

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The Jennifer Lopez brand, which launched in September 2011, channels the timeless allure of old Hollywood in a contemporary interpretation of classic, sophisticated glamour. The collection includes sportswear, dresses, handbags, jewelry, shoes, and sleep-wear. Additionally, the Jennifer Lopez Home Collection consists of bedding and bath products.

THE JENNIFER LOPEZ COLLECTION


Taking cues from his musical roots and world travels, the Marc Anthony brand, which launched in September 2011, has a raw masculinity tempered with impeccable style. The collection includes apparel, sportswear, dress shirts, neckwear, suit separates, sports coats and shoes.

THE MARC ANTHONY COLLECTION

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MERCHANDISE MIXOur merchandise mix has remained consistent in recent years. Our current mix is reflected in the table to the right.

PRIVATE & EXCLUSIVE BRANDS Our private and exclusive brands are a market differentiator and are an important component of our business. Both private and exclusive brands are available “Only at Kohl’s.”

Private and exclusive brands are a key contributor to gross margin We have significant control over the production and manufacture of these brands so we have more pricing flexibility.

Private brands represent the absolute best value in our stores.

• Competitively priced to meet or beat our competition

• Well made and durable so can be worn for years to come

• Versatile so they can be used for multiple wearing occasions

• The most current fashion styles and trends

Exclusive brands

• Consumer awareness and recognition - Prior to launching a new exclusive brand, our marketing department does a significant amount of consumer research to gain insights into brand awareness, attributes, and strength.

• Strong equity – Our exclusive brands are developed through exclusive license agreements with world class partners. The equity factor is a key difference in our strategy vs some of our competitors. Each of our brands is an authority in its customer segment. For example: o Jennifer Lopez, LC Lauren Conrad, Dana Buchman Simply Vera Vera Wang for women’s fashion o Tony Hawk for authentic surf, skate and California Lifestyle o Food Network for kitchen / entertaining o Rock & Republic for premium denim

• Distinct marketing and in-store experience - We create a unique space for each brand in our marketing and in-store experience

STRATEGIC INITIATIVESMerchandise Content

31%

19%

19%

13%

10%

8%Footwear

Accessories

Children’s

Home

Men’s

Women’s

50% 50%

75%

25%

2011

NationalBrands

Private &ExclusiveBrands

50% 50%

75%

25%

2004

NationalBrands

Private &ExclusiveBrands

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Apt. 9 - A private brand in casual Men’s and Women’s sportswear launched in Fall 2004. The brand was extended into Home in Spring 2006.

Bobby Flay - An expansion of the Food Network brand with celebrity talent, featuring Mediterranean influences, bold colors and rich textures was introduced in Spring 2008.

Candie’s - First introduced in 2005 and extended into Home in Spring 2006. Candie’s has partnered with superstars such as Hilary Duff, Fergie, Britney Spears, Vanessa Hudgens, and Lea Michele to promote the hip, young brand.

Chaps - Has been a model of success for our branding initiatives, starting with the launch of Men’s in Spring 2005. Since then, the Chaps brand has been extended throughout the store, including Women’s, Boy’s, and Footwear in Spring 2006, Girl’s in November 2006 and Home in May 2007. Bath Accessories, Newborns and Layette Children’s wear were added in Fall 2007.

Croft & Barrow - One of our first private brands. This classic brand spans Women’s, Men’s, Footwear and Accessories.

daisy fuentes - The first of our major successful exclusive brand initiatives was launched in Fashion Apparel, Sleepwear, Jewelry and Accessories in 2004. This brand was expanded into Petites in 2006 and into Intimates in 2007.

Dana Buchman - This classic lifestyle brand, which launched in February 2009, spans several categories, including Women’s apparel, Intimate apparel, Accessories, and Footwear. Ultimately, the brand may extend into home, beauty and fragrance categories.

DESIGNATION- A limited edition collection concept featuring fashions based on international inspiration from different premier designers launched in November 2012

ELLE - Exclusive brand of Women’s Apparel was launched in about 300 stores in the first quarter of 2007, added to another 250 stores in September 2007 and expanded to all stores in Spring 2008. ELLE Décor, a line of contemporary home furnishings including decorative pillows, frames, candles and accent items, was rolled out to approximately 350 stores and Kohls.com in September 2010. The ELLE BIJOUX jewelry and ELLE branded cosmetics and launched in Spring 2012.

FILA SPORT - Performance and leisure apparel, footwear and accessories for women, men and children was launched in Fall 2008.

Food Network - Branded line of home goods was launched in Kohl’s stores nationwide in the third quarter of 2007. The collection includes cookware, dinnerware, kitchen gadgets, cutlery, food storage, pantry ware, kitchen electrics and home textiles.

Helix - An opening price, contemporary, private brand launched in young men’s tops, fashion bottoms and shorts in February 2010.

PRIVATE & EXCLUSIVE BRANDS


DESIGNATION

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Jennifer Lopez - This contemporary best exclusive brand launched in September 2011 and includes women’s sportswear, dresses, handbags,

jewelry, shoes, sleepwear, bedding, and bath products.

Jumping Beans - A private brand in Infants through little Boys and Girls, was launched in the first quarter of 2008.

LC Lauren Conrad – This contemporary lifestyle brand launched in women’s in approximately 30 Kohl’s stores and Kohls.com in Octo-ber 2009. The initial rollout was so successful that nationwide roll out was accelerated from Fall 2010 to March 2010.

Marc Anthony - This contemporary best exclusive brand launched in September 2011 and includes men’s apparel, sportswear, dress shirts, neckwear, suit separates, sport coats and shoes.

MUDD –This multi-year licensing agreement named Kohl’s as the exclusive U.S. retailer of MUDD apparel, accessories, jewelry and domestics, beginning July 2009. This partnership expanded Kohl’s existing MUDD merchandise assortment in Kohl’s stores nationwide and Kohls.com.

Princess Vera Wang – This junior’s contemporary, premium lifestyle collection launched exclusively in Kohl’s stores nationwide and Kohls.com in July 2012.

Rock & Republic – This premium denim brand launched in women’s, men’s and footwear in February 2012. Kohl’s is the exclusive U.S. retailer of Rock & Republic apparel, accessories and all other mer-chandise.

Simply Vera Vera Wang - The launch of this brand in the third quarter of 2007 was one of the largest in our history with items rolling out in Women’s, Jewelry, Accessories, Intimate Apparel, and Soft Home concurrently. Simply Vera Vera Wang cosmetics launched in Spring 2012.

Urban Pipeline – A modern classic, private brand in young men’s and boy’s apparel.

SO – A modern classic private brand offering wardrobe fundamentals at compelling prices win Junior’s, Intimates, Children’s, Footwear, Handbags & Accessories and Jewelry.

SONOMA life + style - Our private sportswear brand was successfully repositioned in Women’s in 2006 and in Accessories & Handbags and Men’s in 2007.

Tony Hawk - Designed in partnership with Quicksilver, was intro-duced in the Young Men’s and Boy’s categories in Spring 2006 and subsequently expanded into Footwear, including fashion skate shoes and sandals, in February 2007.

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Private and Exclusive Brand Launches by Date

1988Croft & Barrow launches in men’s apparel and accessories

1989Croft & Barrow extends into boy’s, women’s clothing and accessories

2003Urban Pipeline launches in young men’s and boy’s apparelSonoma life+style launches in apparel and accessories

2004Apt. 9 launches in men’s and women’s sportsweardaisy fuentes launches in fashion apparel, sleepwear, jewelry and accessories

2005Chaps launches in men’s

2006Apt. 9 extends into home

Chaps extends into women’s, boy’s, footwear and girl’s

daisy fuentes extends into petites

Sonoma life+style repositions in women’s

Tony Hawk launches in young men’s and boy’s

2007Chaps extends into home, bath accessories, newborns and layette children’s

daisy fuentes extends into intimates

ELLE launches in women’s apparel

Food Network launches in home

Simply Vera Vera Wang launches in women’s jewelry, accessories, intimate apparel and soft home

Sonoma life+style repositions in accessories & handbags and men’s

Tony Hawk expands into footwear

So launches in junior’s, intimates, children’s footwear, handbags & accessories and jewelry

2008Bobby Flay, an expansion of Food Network, launches in home

FILA Sport launches in performance and leisure apparel, footwear and accessories for women, men and children

Jumping Beans launches in infants, boys and girls

Sonoma life+style extends into home

2009Dana Buchman launches in women’s apparel, intimate apparel, accessories and footwear

LC Lauren Conrad launches in women’s

MUDD – Kohl’s becomes exclusive retailer of MUDD apparel, accessories, jewelry and domestic

2010ELLE Decor launches in home

Helix launches in young men’s tops, fashion bottoms and shorts

Sonoma Outdoors launches in outdoor furniture and home

2011Jennifer Lopez launches in women’s sportswear, dresses, handbags, jewelry, shoes, sleepwear, bedding and bath products

Marc Anthony launches in men’s apparel, sportswear, dress shirts, neckwear, suit separates, sport coats and shoes

2012Rock & Republic launches in men’s and women’s apparel and footwear

ELLE BIJOUX launches in jewelry

ELLE expands into cosmetics

Princess Vera Wang launches in juniors

Simply Vera Vera Wang expands into cosmeticsDESIGNATION launches in Women’s apparel

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NATIONAL BRANDS

National brands are another key component to our brand mix. They deliver brand names customers know with quality they trust. With national brands, customers can see the value that Kohl’s delivers when they compare across retailers.

Kohl’s is the #1 Retailer in the U.S. of Lee, Gold Toe, Bali, Levi’s, Dockers and Columbia. Our competitors also have these brands - but we have a dominant assortment. If customers want to get the most of what these brands have to offer, they need to come to Kohl’s.


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NINE-BOX MERCHANDISING GRID


The “Nine-Box Merchandising Grid” or “Lifestyle Matrix” defines our brands as they relate to consumer lifestyles and price tiers.

It is used to:• Provide clear guidelines for lifestyle and pricing across business groups• Provide clarity and consistency when defining where a brand will “live”• Effectively manage a growing portfolio of businesses• Identify opportunities for new businesses

Consumer lifestyles include:

• Classic - A traditional, timeless look that is smart, put together, and always in style

• Modern Classic - A modern classic look that is rooted in layering unique, trend pieces

• Contemporary - A fashion forward, contemporary look that incorporates the latest trends

BEST

BETT

ERG

OO

D

% T O T A L

CLASSIC MODERN CLASSIC CONTEMPORARY % T O T A L

20%

30%

50%

38% 38% 24%

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Connecting with the KOHL’S consumer through fresh and innovative marketing. Marketing’s objective in 2012 is to grow share by proving that Kohl’s is the best solution for the savvy shopper. Kohl’s offersguilt-free shopping without sacrificing style or quality, and ourmarketing will:

• Create awareness and excitement for new brands and

extensions of current brands

• Highlight the well- known national brands consumers seek

• Elevate Kohl’s style credentials

• Demonstrate quality features and benefits

Marketing will fuel the thrill of shopping at Kohl’s for great value through compelling promotional prices, a balanced communication of price points with discounts ranges, and continued emphasis on value- added offers such as Kohl’s cash and the Kohl’s credit card program.

Continued growth and expansion of media channels will allowfor fully integrated and interactive consumer experiences, usingsocial and digital media to connect with consumers and maximize mass reach mediums such as television.

MarketingSTRATEGIC INITIATIVES

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Our goal is to have the right inventory, in the right store, at the right time. We employ the following strategies to achieve this goal:

• Strategic inventory planning – Sales expectations are a key component of inventory planning. We leverage sales expectations to closely manage inventory levels and differentiate inventory levels based on sales volume.

Management of seasonal inventories is also a key component of our strategic inventory planning. Seasonal inventory is right-sized based on the time of the year and sales opportunity. Additionally, by reducing seasonal inventory while maintaining levels for basics, such as hosiery and underwear, we are able to deliver a better shopping experience.

This drives a better shopping experience for our customer and results in: – Less crowding and clearance on the selling floor – Better receipt flow to provide new merchandise and replenish sizes/colors – More focused assortments – The right balance of trend and newness in our stores– Improved gross margin as fewer inventories are reduced to clearance pricing

• Regional Assortments - We are focused on delivering a regional assortment that meets her needs -- based on climate and lifestyle. We have recently added several great new brands, including LC Lauren Conrad, Jennifer Lopez, Marc Anthony and Rock & Republic, which have been targeted to improve our lifestyle and regional relevance, especially in warmer markets. Seasonal transitions are also critical in ensuring relevance by climate.

• Optimization technology - We also leverage optimization technology to maximize inventory productivity and improve our customer’s ability to find the size and color that she wants.

• “Concept to Customer” – This initiative is focused on increasing our speed-to-market and allows us to develop and deliver product quicker, while meeting our customers’ needs and remaining on trend. Three years ago, it took 45 weeks from the start of development to the time product was delivered in store. As a result of this initiative, our cycle time is now 20 - 32 weeks, with our fastest

brands delivering in 12 weeks and reorders in 4 - 6 weeks.

Disciplined inventory management also generates significant Operational Efficiencies, specifically: – Fewer in-bound receipt units to process – Substantially less merchandise to handle in store – Fewer markdown units to process

Inventory ManagementSTRATEGIC INITIATIVES

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111 107115

140

71

RemodeledNew

42

Our goal is to deliver a great shopping experience to our customers on a consistent basis throughout the country at all times of the

year. Every Customer, Every Time, Every Store.

Practical, easy shopping is about convenience. At Kohl’s, convenience includes a neighborhood location close to home, convenient parking, easily accessible entry, knowledgeable and friendly associates, wide aisles, a functional store layout, shopping carts/strollers and fast, centralized checkouts. Though our stores have fewer departments than traditional, full-line department stores, the physical layout of the store and our focus on strong in-stock positions in style, color and size is aimed at providing a convenient shopping experience for an increasingly time-starved customer.

Remodels are an important part of our in-store shopping experience initiative as we believe it is extremely important to maintain our existing store base, even in this difficult economic

environment. Approximately 50% of our stores are either new or were remodeled in the last 5 years.

In-Store ExperienceSTRATEGIC INITIATIVES

12

36 5185

100

75 56 30 405021

30

New and Remodeled Stores

2008 2009 2010 2011 2012 2013 est.

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Our expansion strategy has been, and will continue to be, designed to achieve profitable growth. At the time of our initial public offering in 1992, we had 76 stores in the Midwest.

In 2003, we opened 28 stores in California, giving us a coast-to-coast presence for the first time in our history. We have 128 stores in California, significantly more than any other state. In 2006, we expanded into the Northwest with 10 new stores

in Oregon and Washington. We expanded our Southeast presence in 2005 through 2008, when we opened 43 stores in Florida. The table below shows our growth from a Midwest to a nationwide company.

Though our expansion rate has slowed in recent years, we will continue to focus our future expansion efforts on opportunistic acquisitions given the current retail environment as well as fill-in stores in our better performing markets.

Stores by Region 1992 2002 2008 2009 2010 2011 2012Midwest 79 196 290 289 292 300 301

Mid-Atlantic - 57 99 98 106 110 113

Northeast - 77 136 140 143 147 153

South Central - 67 131 135 138 143 147

Southeast - 49 160 168 173 183 188

West - 11 188 228 237 244 244

Total Kohl’s 79 457 1004 1058 1089 1127 1146

StoresREAL ESTATE

244

301

147 188

113

153

1146 Stores 49 States

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Stores by Ownership (#) Stores by Ownership (%)

Owned Leased Total Owned Leased Total 2006 265 552 817 33% 67% 100%

2007 327 602 929 35% 65% 100%

2008 363 641 1,004 36% 64% 100%

2009 372 686 1,058 35% 65% 100%

2010 382 707 1,089 35% 65% 100%

2011 403 724 1,127 36% 64% 100%

2012 407 739 1,146 36% 64% 100%

Number of StoresQ1 Q2 Q3 Q4

2006 749 749 814 817

2007 834 834 914 929

2008 957 957 1,004 1,004

2009 1,022 1,022 1,059 1,058

2010 1,067 1,067 1,089 1,089

2011 1,097 1,097 1,127 1,127

2012 1,134 1,134 1,146

Square Footage ( in Thousands )

Stores by Region

Gross SellingQ1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2006 67,318 67,318 72,752 73,027 57,860 57,860 62,141 62,357

2007 74,452 74,452 81,228 82,538 63,518 63,518 68,848 69,889

2008 84,922 84,922 88,979 88,979 71,758 71,758 74,992 74,992

2009 90,554 90,554 93,370 93,289 76,273 76,273 78,467 78,396

2010 94,063 94,063 95,819 95,819 78,784 78,784 80,139 80,139

2011 96,380 96,380 98,463 98,463 80,597 80,597 82,223 82,223

2012 98,883 98,883 99,567 82,549 82,549 83,098

Mid Atlantic Midwest North East South Central Southeast West Total 2006 85 260 124 106 100 142 817

2007 93 275 132 126 125 178 929

2008 99 290 136 131 160 188 1,004

2009 98 289 140 135 168 228 1,058

2010 106 292 143 138 173 237 1,089

2011 110 300 147 143 183 244 1,127

2012 113 301 153 147 188 244 1,146

Stores by Store Type Stores by Location Prototype & Urban Small Total Strip Center Malls Free Standing Total

2006 782 35 817 587 61 169 817

2007 867 62 929 664 64 201 929

2008 922 82 1,004 717 66 221 1,004

2009 966 92 1,058 746 73 239 1,058

2010 983 106 1,089 751 78 260 1,089

2011 992 135 1,127 764 83 280 1,127

2012 992 154 1,146 771 85 290 1,146

StoresREAL ESTATE

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Billions of dollars in business, thousands of products for millions of ready-to-buy customers — it all goes through our Distribution Centers (DC). Our store and E-Commerce businesses rely on the expertise and ingenuity of our DC personnel. They are the heart of our organization — allowing us to have the right inventory, in the right store, at the right time.

The following Kohl’s Distribution Centers are well positioned to support all store and E-Commerce business.

Year Opened Square Footage Approximate Store Capacity

Distribution Center: Findlay, Ohio 1994 780,000 130

Winchester, Virginia 1997 420,000 120

Blue Springs, Missouri 1999 540,000 110

Corsicana, Texas 2001 540,000 115

Mamakating, New York 2002 605,000 145

San Bernardino, California 2002 575,000 110

Macon, Georgia 2005 560,000 155

Patterson, California 2006 360,000 100

Ottawa, Illinois 2008 328,000 165

E-Commerce Center: Monroe, Ohio 2001 940,000

San Bernardino, California 2010 970,000

Edgewood, Maryland 2011 1,000,000 DeSoto, Texas Summer 2012 951,000

Distribution CentersREAL ESTATE

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Our Social Awareness MissionAt Kohl’s, we believe in giving back to the communities we serve, not just with money and resources but also with talent and time. Through our community giving and volunteer program, we support kids’ health and education, environmental initiatives and women’s health. We envision a future where kids are healthy, resources are plentiful and breast cancer is a thing of the past. Because the way we see it, giving back also means looking ahead.

We believe that everybody has the ability to make a difference. Our Associates are making a difference in the lives of children by volunteering for youth-serving nonprofit organizations and environmental initiatives that benefit youth-serving nonprofit organizations. In Wisconsin, Associates are also encouraged to help make a difference in women’s health by volunteering with Wisconsin-based non-profit organizations that focus on breast cancer.

When a minimum of five Associates from one location volunteer at least three consecutive hours of their time with a qualifying organization, Associates help the nonprofit earn a grant. Because every dollar counts, and every hand helps.

Since 2001, program efforts have resulted in: • 103,000 Volunteer Events • 610,000 Associate Volunteers • 2 million Volunteer Hours • $57 Million Donated

SOCIAL AWARENESS

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When it comes to kids, Kohl’s cares. We support kids’ health and education initiatives in communities nationwide. With over a decade of dedication and millions of dollars raised, we aim to give kids a brighter, healthier future. From immunization and nutrition programs to scholarships, we are committed to making a difference for kids in our communities so that someday they can make a difference in the world.

To date, Kohl’s has raised more than $200 million to support kids’ health and education initiatives nationwide through our Kohl’s Cares® cause merchandise program.

American women have a one-in-eight lifetime chance of being diagnosed with breast cancer. And for every woman who is diagnosed, there is a family who hopes for a cure.

In Wisconsin, through our cause merchandise program and partnerships with world-class women’s health organizations, we are helping to fund research, raise awareness and educate women about the importance of regular exams and prevention. Together we can work toward a future where breast cancer is a thing of the past.

SOCIAL AWARENESS

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Kohl’s Sustainability Mission StatementAt Kohl’s, we are committed to protecting and conserving the environment by seeking innovative solutions that encourage long-term sustainability. From large-scale initiatives like constructing environmentally friendly buildings, to everyday practices like recycling hangers, we’re taking steps both big and small to ensure we leave a smaller footprint.

Our Strategies:

Sustainable Operations: Key Accomplishments

•Energy and Climate • More than 700 ENERGY STAR labeled Stores with an average ENERGY STAR store score of 77 • Offset 100% of electricity use through purchase of more than 1.5 million renewable energy credits. Ranking 2nd overall by companies in the USA supporting renewable energy. • More than 122 activated solar arrays • Commitment to Carbon Neutrality for 2010, 2011 and 2012, achieving net zero emissions in 2010 and 2011

•Recycling and Waste • Recycled more than 149,000 tons of material for a 78% operating recycle rate in 2011

•Building Design • Member of US Green Building Council with three active Leadership in Energy and Environmental Design (LEED) programs in place boasting 203 LEED certified locations

Stakeholder Engagement: Key ProgramsThe Stakeholder Engagement Strategy is at the “core” of the Sustainability Pyramid and it involved engaging the following groups in Kohl’s sustainability mission:

•Associates • National Go Green Volunteer Program- engages 30,000 associates nationwide in local volunteer opportunities in the month of April in activities that benefit both kids and the environment, donating over $2 million to local non profits through these events • Green Networks- Every associate at Kohl’s is part of the “green network” either through personal actions like recycling paper or through projects that include sustainability and efficiency in the decision making process. It’s Kohl’s way to embed sustainability into the everyday work life.

•Partnerships • EPA Voluntary Partnerships: WasteWise, Green Power Partnership, ENERGY STAR and SmartWay Shipper • Sustainable Apparel Coalition • Business for Social Responsibility • US Green Building Council • Climate Counts • ECO Forum • Green Biz Executive Network

•Customers • In store Messaging through overhead announcements and screen savers • Social Networking communication • Consumer facing Sustainability Website

SUSTAINABILITY PROGRAM

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SUSTAINABILITY PROGRAM

Supply Chain Sustainability: OverviewIn 2011, Kohl’s formally extended its sustainability program to include Supply Chain Sustainability. This strategy builds on Kohl’s sustainable operations strategy as well as the company’s commitment to engaging stakeholders. This sustainability effort began in its early form in 2009 by surveying merchandise vendors, and has grown to the actions outlined in this factbook. Kohl’s works hard to keep its operations sustainable and actively collaborates with its supply chain partners to drive the concept of efficiency and resource conservation.

Every quarter, Kohl’s merchandise vendors are asked to complete a 42 question survey on 6 areas of sustainability as listed in the table to the right This year, scoring emphasis was placed in the area of Energy/Climate to engage vendors in footprint measurement. The survey is a voluntary self-assessment on sustainability. Vendor results are included on the company’s supply chain scorecard, but did not affect the overall vendor grade in 2011. It was our goal to encourage vendor sustainability in a collaborative format regardless of level of sustainability sophistication.

Area Possible Survey Points

Management / Policy 20

Energy/ Climate 35

Waste Management 15

Packaging 15

Partnerships 5

Supply Chain Sustainability 10

Total 100

Sustainability Survey Scoring 2011

Sustainability Recognition:• ENERGYSTARPartneroftheYearAward- 2010, 2011

• ENERGYSTARSustainedExcellenceAward – 2012

• EPAGreenPowerPartneroftheYear- 2009, 2010, 2011

• EPAGreenPowerLeadershipAward-2007, 2008

• EPACleanAirExcellenceAward-Greg Cook Visionary Award 2011

• EPAWasteWiseLeadershipAwards – Green Purchasing/ Organic Materials 2011

• EPASmartWayShipperExcellenceAward 2009, 2010\

• EdisonGreenAward- Gold Thomas Edison Papers at Rutgers University 2010

Learn more about Kohl’s Sustainability Programs

at www.kohlsgreenscene.com

26


We have a proven history of financial performance. Since our IPO in 1992, sales have grown at a compound annual growth rate (“CAGR”) of 16% and net income has increased at a CAGR of 22 %. Though economic conditions have negatively impacted our

results in recent years, since 2007, our sales have increased 14% and our next income has increased 10%. Our gross margin as a percent of sales declined 6 basis points in 2011; our first decline since 2003.

OverviewFINANCIALS

(in Billions)

(in Millions)

$26

$1,060

$857

$973

$1,120$3.31

$2.80

$3.17

$3.66

$4.30

$1,167

* Constant Annual Growth Rate

Net Sales Gross Margin as a Percent of Sales

Net Income Diluted EPS

1992 2007 2008 2009 2010

$1.1

$16.5$16.4

$17.2

$18.4

36.5%

36.9%

37.8%

38.2%

2007 2008 2009 2010

1992 2007 2008 2009 2010 2007 2008 2009 2010 2011

2011

$18.8

38.2%

2011

2011

16% CAGR*

22% CAGR*

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(a) Comparable store sales growth is based on sales for stores (including and relocated or remodeled stores) which were open throughout both the full current and prior year periods and E-Commerce.(b) Net sales per selling square foot is based on stores open for the full current period, excluding E-Commerce.(c) Average shareholders’ equity and average assets are based on a 5-quarter average for 2011 and 2010, and the two most recent year-end balances for 2009, 2008, and 2007.

($ in Millions, except per share info) 2012 Third 2012 Second 2012 First 2011 Fourth 2011 Third

Net sales $4,490 $4,205 $4,243 $6,018 $4,376

Net Income $215 $240 $154 $455 $211

Diluted shares 235 239 245 252 265

Diluted net income per share $0.91 $1.00 $0.63 $1.81 $0.80

Dividends per common share $0.32 $0.32 $0.32 $0.25 $0.25

FINANCIALSQuarterly Operating Results

($ in Millions, except per share info) 2011 2010 2009 2008 2007

Statements of Operations Data:

Net sales $18,804 $18,391 $17,178 $16,389 $16,474

Cost of merchandise sold 11,625 11,359 10,680 10,334 10,460

Gross margin 7,179 7,032 6,498 6,055 6,014

Selling, general and administrative expenses 4,243 4,190 3,951 3,769 3,548

Depreciation and amortization 778 750 688 632 535

Operating income 2,158 2,092 1,859 1,654 1,931

Interest expense, net 299 304 301 275 228

Income before income taxes 1,859 1,788 1,558 1,379 1,703

Provision for income taxes 692 668 585 522 643

Net income $1,167 $1,120 $973 $857 $1,060

Net income per share:

Basic $4.33 $3.69 $3.19 $2.80 $3.33

Diluted $4.30 $3.66 $3.17 $2.80 $3.31

Dividends per share $1.00 - - - -

Operating Data:

Net sales growth 2.2% 7.1% 4.8% (0.5%) 5.6%

Comparable store sales growth (a) 0.5% 4.4% 0.4% (6.9%) (0.8%)

Net sales per selling square foot (b) $220 $222 $217 $222 $249

As a percent of sales:

Gross margin 38.2% 38.2% 37.8% 36.9% 36.5%

Operating income 11.5% 11.4% 10.8% 10.1% 11.7%

Net income 6.2% 6.1% 5.7% 5.2% 6.4%

Total square feet of selling space (end of period, in thousands) 82,226 80,139 78,396 74,992 69,889

Number of stores open (end of period) 1,127 1,089 1,058 1,004 929

Return on average shareholders' equity (c) 16.4% 14.1% 13.8% 13.8% 18.8%

Return on average assets (c) 8.1% 7.5% 7.2% 7.0% 9.6%

Balance Sheet Data (end of period)

Working capital $2,185 $2,861 $3,030 $1,828 $1,903

Property and equipment, net 8,905 8,692 8,506 8,402 7,937

Total assets 14,094 14,849 14,465 12,588 11,796

Long-term debt (including current portion) 2,141 1,894 1,894 1,893 1,892

Capital lease and financing obligations (including current portion) 2,103 2,104 2,046 1,914 1,864

Shareholders' equity 6,508 7,850 7,595 6,499 5,890

Annual Operating Results

28

Sky Lorenz

Sticky Note


Quarter Year-to-DateQ1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Total Sales Dollars (in Millions)

2007 $ 3,572 $ 3,589 $ 3,825 $ 5,487 $ 3,572 $ 7,161 $ 10,986 $ 16,474

2008 3,624 3,725 3,804 5,235 3,624 7,350 11,153 16,389

2009 3,638 3,806 4,051 5,682 3,638 7,445 11,496 17,178

2010 4,035 4,100 4,218 6,038 4,035 8,135 12,353 18,391

2011 4,162 4,248 4,376 6,018 4,162 8,410 12,786 18,804

2012 4,243 4,205 4,490 4,243 8,447 12,937

Total Sales Growth 2007 11.8% 8.7% 4.8% 0.7% 11.8% 10.2% 8.3% 5.6%

2008 1.5% 3.8% (0.6%) (4.6%) 1.5% 2.6% 1.5% (0.5%)

2009 0.4% 2.2% 6.5% 8.5% 0.4% 1.3% 3.1% 4.8%

2010 10.9% 7.7% 4.1% 6.3% 10.9% 9.3% 7.4% 7.1%

2011 3.1% 3.6% 3.8% (0.3%) 3.1% 3.4% 3.5% 2.2%

2012 1.9% (1.0%) 2.6% 1.9% 0.4% 1.2%

Comparable Store Sales Growth 2007 3.9% 1.3% (2.6%) (4.0%) 3.9% 2.5% 0.7% (0.8%)

2008 (6.7%) (4.6%) (6.7%) (9.1%) (6.7%) (5.6%) (6.0%) (6.9%)

2009 (4.2%) (2.3%) 2.4% 4.5% (4.2%) (3.2%) (1.3%) 0.4%

2010 7.4% 4.6% 1.8% 4.3% 7.4% 5.9% 4.4% 4.4%

2011 1.3% 1.9% 2.1% ( 2.1%) 1.3% 1.6% 1.7% (0.5%)

2012 0.2% (2.7%) 1.1% 0.2% (1.3%) (0.5%)

Comparable Store Sales growth is based on sales for stores (including relocated or remodeled stores) which were open throughout both the full current and prior year periods and e-commerce sales.

OverviewFINANCIALS

29


Our strong balance sheet and ability to generate free cash flow are allowing us to return value to our shareholders through both a dividend and share repurchases.

DividendsIn February 2011, our Board of Directors approved our first dividend. The 25 cent per share quarterly dividend reflects our Board’s confidence in our long-term cash flow. In February 2012, our Board increased the quarterly dividend to 32 cents per share.

We currently expect to pay dividends on the last Wednesday of March, June, September and December to shareholders of record on the second Wednesday of these months. The payment of future dividends, if any, will be determined by our Board of Directors in light of existing business conditions, including our earnings, financial condition and requirements, restrictions in financing agreements and other factors deemed relevant by our Board of Directors.

Share RepurchasesWe also have an active share repurchase plan. In November 2012, our Board of Directors increased the remaining share repurchase authorization under our existing share repurchase program by $3.2 billion, to $3.5 billion. We expect to repurchase shares in open market transactions, subject to market conditions over the next three years.

Return on Gross Investment (“ROI”) We define ROI as earnings before interest, taxes, depreciation, amortization and rent (“EBITDAR”) divided by average gross investment. We believe that ROI measures how effectively we utilize our assets, excluding cash equivalents and long-term investments, to generate earnings.

For additional details regarding how we calculate this non-GAAP financial measure, see our Annual Report on Form 10-K.

CAPITAL MANAGEMENT

* Includes 907,000 shares received in February 2011 as part of accelerated Share repurchase program.

YTD YTD

Number of Shares Repurchased

2010 2011 2010

( in Millions )

2008 2009 2010

Return on Investment - ROI

2011

Value of Shares Repurchased

( Dollars in Billions )

18.8*

45.7

$1.0

$2.3

2011

17.3%

18.2%

19.2%18.8%

2012 2012

17.6

$0.9

30

Sky Lorenz

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KEVIN MANSELLChairman, President and Chief Executive OfficerMr. Mansell is responsible for Kohl’s strategic direction, long-term growth and profitability. He has served as Chairman since September 2009, Chief Executive Officer since August 2008 and President and Director since February 1999. He served as Executive Vice President – General Merchandise Manager from 1987 to 1998. Mr. Mansell joined Kohl’s as a Divisional Merchandise Manager in 1982. Mr. Mansell has 36 years of experience in the retail industry.

DON BRENNANChief Merchandising OfficerMr. Brennan was promoted to Chief Merchandising Officer in November 2010 and is responsible for all merchandising divisions, product development, merchandise planning and allocation, as well as E-Commerce. Previously, he had served as Senior Executive Vice President since September 2007. He joined Kohl’s in April 2001 as Executive Vice President, Merchandise Planning and Allocation, and also served as Executive Vice President, General Merchandise Manager Men’s and Children’s from April 2004 to September 2007. Prior to joining Kohl’s, Mr. Brennan served in a variety of management positions with Burdines Department Stores, a division of Federated Department Stores, Inc. since 1982. Mr. Brennan has 30 years of experience in the retail industry.

JOHN M WORTHINGTONChief Administrative OfficerMr. Worthington was promoted to Chief Administrative Officer in November 2010 and is responsible for store operations, store administration, merchandise presentation, loss prevention, real estate, information systems and purchasing. Previously, he had served as Senior Executive Vice President since September 2007. Prior to this assignment, Mr. Worthington served in a variety of positions with Kohl’s, including Executive Vice President, Director of Stores from 2005 to 2007, Senior Vice President of Stores from 2004 to 2005 and Vice President, Regional Manager from 2002 to 2004. Mr. Worthington was with May Department Stores, Inc. before joining Kohl’s and has over 20 years of experience in the retail industry.

EXECUTIVE BIOGRAPHIES

31


Kevin MansellChairman, President and Chief Executive OfficerKohl’s Corporation

Peter Boneparth (b)(c)Senior AdvisorIrving Capital Partners

Steven A. Burd (b)(c)Chairman, President and Chief Executive OfficerSafeway Inc.

John F. Herma (a)(c)Former Chief Operating Officer and SecretaryKohl’s Corporation

Dale E. Jones (b)(c)Vice Chairman and Partner of the CEO and Board Practice in the AmericasHeidrick and Struggles

William S. KelloggFormer Chairman and Chief Executive OfficerKohl’s Corporation

John E. Schlifske (a)(c)Chairman and Chief Executive OfficerNorthwestern Mutual Life Insurance Company

Frank V. Sica (b*)(c)Managing PartnerTailwind Capital

Peter M. SommerhauserShareholderGodfrey & Kahn, S.C. Law Firm

Stephanie A. Streeter (a)(c*)Chief Executive Officer and Director Libbey Inc

Nina G. Vaca (a)(c)Chairman, Chief Executive OfficerPinnacle Technical Resources, Inc.

Stephen E. Watson (a*)(c)Former President and Chief Executive OfficerGander Mountain, L.L.C. Former Chairman and Chief Executive OfficerDepartment Store Division of Dayton-Hudson Corporation

(a) Audit Committee member(b) Compensation Committee member(c) Governance & Nominating Committee member* Denotes Chair

BOARD OF DIRECTORS

32


Exchange/SymbolKohl’s Corporation common stock is traded on the New York Stock Exchange under the symbol KSS.

Standard & PoorsKohl’s Corporation is an S&P Fortune 500 company.

SIC Code5310

Independent AuditorsErnst & Young LLPMilwaukee, Wisconsin

Transfer Agent and RegistrarTo change the name or address on stock certificates* contact:

Wells Fargo Shareowner ServicesP.O. Box 64874St. Paul, MN 55164-0856Telephone: (800) 468-9716*Kohl’s associates (current or former) should contact Human Resources to make changes to stock certificates

Corporate HeadquartersKohl’s Department StoresN56 W17000 Ridgewood DriveMenomonee Falls, WI 53051 Phone: (262) 703-7000

Investor Information/Annual and Quarterly ReportsFor quarterly earnings reports, our periodic filings with the SEC and other investor information, please visit our Web site at www.KohlsCorporation.com or direct your inquiries to Investor Relations

ContactsInvestor RelationsPhone: (262) 703-1440Fax: (262) 703-6143 E-Mail: [email protected]

Upcoming EventsFor a listing of upcoming events, including earnings releases and our Annual Meeting of Shareholders, please visit our Web site at www.KohlsCorporation.com

Media RelationsPhone: (262) 703-7000Fax: (262) 703-6501

CORPORATE INFORMATION

33

To be the leading family-focused, value oriented,

specialty department store offering quality exclusive

and national brand merchandise to the customer in an-

environment that is convenient, friendly and exciting.

MISSION STATEMENT

Kohl’s Department StoresN56 W17000 Ridgewood DriveMenomonee Falls, WI 53051 Phone: (262) 703-7000 www.KohlsCorporation.com

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